Many customers that import from overseas must order long lead time products (90+ days) before they know the ultimate destinations, quantities to be shipped to those ultimate destinations, and firm shipping dates. This is typically done so that overseas manufacturers can schedule production and order the necessary raw materials. Generally, there is also a window of time that the order can be changed (increased or decreased). As details become known (actual ship dates to specific customers or warehouse locations), these are supplied to the overseas manufacturer.
It is not unusual for blanket purchase orders to be issued in advance of receiving firm customer orders (and official shipping instructions), or knowing which warehouse locations will receive specific quantities. In many cases, the supplier purchase order goes through numerous iterations and changes (ship date releases) up until the point of being shipped. Additionally, multiple customer orders from different customers can sometimes be associated with the same supplier purchase order (to get a better negotiated price).
For more information, see Blanket Purchase Orders FAQ.
Blanket orders can be issued to suppliers to handle both direct ship sales order lines (order lines going directly from your supplier to your customer) and replenishment of warehouse location inventory.
The following table summarizes the steps that are applicable to the direct ship and warehouse location options:
|
Window |
Process Step |
Direct Ship |
Warehouse Location |
|
Set up a Blanket type order class. |
X |
X |
|
|
Enter a purchase order with a Blanket type order class. Note You can skip this step for a direct-ship order if you want to create the blanket purchase order and release in a single step in Blanket Purchase Order and Direct Ship Release Create. |
X |
X |
|
|
Enter a sales order with a line (or lines) that have been marked as direct ship. |
X |
|
|
|
Create releases of a blanket purchase order (linking to a direct ship sales order line or to a warehouse location). Note The status is Open. Note You can also create the blanket purchase order and release in a single step for a direct-ship order in Blanket Purchase Order and Direct Ship Release Create. |
X |
X |
|
|
Click the Prep for Labels button in the ribbon to print UCC128 labels for direct ships, and to update the on-order bucket for warehouse locations. Note The status is now Prep Labels. Note You can also prepare labels when you create the blanket purchase order and release in a single step for a direct-ship order in Blanket Purchase Order and Direct Ship Release Create. |
X |
X |
|
|
If necessary, repackage products on a direct ship release. |
X |
|
|
|
Add releases to containers. |
X |
|
|
|
Add containers to shipments. |
X |
X |
|
|
To cancel a release, click the Cancel Release button in the ribbon. Note If you have already put a release on a container/shipment, then you must first remove it from the container/shipment before canceling the release. |
X |
X |
|
|
To be able to create a customer invoice or enter a supplier’s invoice, click the Finalize Release button in the ribbon. Note The status is now Finalize. Note This is the point of no return in the process. Additional charges are created, the internal pick demand is updated with all costs, the inventory is adjusted, and the releases are marked as ready to post. After you have finalized a release, you can no longer cancel or delete it. |
X |
X |
|
|
Select the Direct Ship Releases radio button to post finalized releases to the Cost of Goods Sold and A/P Clearing general ledger accounts. |
X |
|
|
|
Select the customers to be invoiced for direct shipments. |
X |
|
|
|
This posts to the Sales and Accounts Receivable general ledger accounts for direct ship invoices. |
X |
|
|
|
Receive the containers on a shipment into a warehouse location. |
|
X |
|
|
Select the Inventory Receipts radio button to post to the Inventory and A/P Clearing general ledger accounts. |
|
X |
|
|
Enter supplier and additional purchase order charge invoices and reconcile. |
X |
X |